Directors' Dealings

Gulfsands Petroleum PLC
22 November 2006

22 November 2006



Gulfsands Petroleum plc ('the Company')



Directors' Dealings



Gulfsands Petroleum plc (AIM: GPX), the oil and gas production, exploration and
development company with activities in the USA, Syria and Iraq announces that it
has today received notification from John Dorrier (Chief Executive Officer) and
David DeCort (Chief Financial Officer) for the exercise of options (the 'Options
Exercise') over 5,643,750 ordinary shares of 5.714p each in the Company ('
Ordinary Shares'). The exercise of these options is part of a plan (as
previously announced on 28 July 2006) intended to facilitate the early exercise
of all stock options issued to Directors in the years prior to the Initial
Public Offering of the Company on AIM in April 2005.



The Company received $1,963,750 (approximately £1.045 million) in proceeds from
the Options Exercise and subsequently Messrs. Dorrier and DeCort sold 4,550,000
of the new Ordinary Shares arising as a result of the Option Exercise ('the Sale
Shares') of which 3,550,000 were sold so as to cover certain US tax liabilities
and the cost of exercising these and earlier options that were exercised on 28
July 2006.  As a consequence Mssrs Dorrier and DeCort purchased a net 1,093,750
Ordinary Shares.



The majority of the Sale Shares were placed with institutional investors, at a
price of 90p per share.  Following the Options Exercise and subsequent sale of
the Sale Shares Mr. Dorrier's shareholding increased to 9,098,750 Ordinary
Shares and Mr. DeCort's shareholding increased to 5,164,375 ordinary shares,
representing 8.83% and 5.01% respectively of the issued share capital of the
Company.  Further details of the Options Exercise and sale of the Sale Shares
are summarised in Appendix I to this announcement below.



Gulfsands also announces that pursuant to the Options Exercise, it has received
notification today that Hamilton Capital Partners Limited ('Hamilton'), an
associate company of Kenneth Judge (Director of Corporate Development), has
today purchased 323,000 Ordinary Shares of Gulfsands at 90p per share.
Following this purchase, Hamilton's interests in the Company increased to
3,966,750 Ordinary Shares, or 3.85% of the issued share capital of the Company.



Following the purchase by Hamilton Capital Partners Limited and the net increase
in the shareholdings of Messrs Dorrier and DeCort resulting from the Options
Exercise and sale of the Sale Shares, the directors have, collectively,
increased their overall ownership in Gulfsands to a total of 26,701,250 Ordinary
Shares, representing approximately 26% of the Company's issued share capital.



Following the Options Exercise, there remain a total of 4,733,750 options
outstanding with expiry dates between 1 January 2008 and 18 October 2011
(further details of which are set out in the Company's 2005 Report & Accounts
which were circulated to shareholders and are available on the Company's website
- www.gulfsands.net). The new Ordinary Shares to be issued as a result the
Options Exercise rank pari passu with the existing ordinary share capital of the
Company and have been allotted and issued credited as fully paid.  Application
has been made for the 5,643,750 new Ordinary Shares to be admitted to trading on
AIM. Dealings are expected to commence on or around 24 November 2006.




Following admission, the total issued share capital of the Company has increased
to 103,018,750 Ordinary Shares.



For further information including the Company's recent investor presentation,
please refer to the Company's website www.gulfsands.net or contact:


Gulfsands Petroleum (Houston)                                + 1-713-626-9564
John Dorrier, Chief Executive Officer
David DeCort, Chief Financial Officer

Gulfsands Petroleum (London)                                 020-7182-4016
Kenneth Judge, Director of Corporate Development             07733 001 002

College Hill (London)                                        020-7457-2020
Nick Elwes
Paddy Blewer

Teather & Greenwood (London)                                 020-7426-9000
James Maxwell (Corporate Finance)
Tanya Clarke (Specialist Sales)


ABOUT GULFSANDS:



Gulf of Mexico, USA

The Company owns interests in 64 offshore blocks comprising approximately
216,000 gross acres which includes numerous producing oil and gas fields
offshore Texas and Louisiana with proved and probable recoverable reserves of
32.4 BCFGE, consisting of 19.8 BCFG and 2.1 MMBO.  As of 1st January 2006 these
were estimated to have a net present value of $183 million. In addition, the
Company's 2.8 BCFGE of possible recoverable reserves were estimated to have a
net present value of $15.8 million.



Syria

Gulfsands owns a 50% working interest and is operator of Block 26 in North East
Syria.  Block 26 covers 11,000 square kilometres and encompasses existing fields
which currently produce over 100,000 barrels of oil per day. These fields are
operated by third parties including the Syria Petroleum Company.



In January 2006 the Company completed the acquisition of 1,155 kilometres of 2D
seismic over Block 26 and following evaluation of this data, commenced drilling
of the Tigris-1 prospect on 10 September, 2006. The Tigris structure is
estimated to have the potential to contain in excess of 500 MMBOE.  Gulfsands
has identified numerous exploration prospects and leads within Block 26 with
mean resources potential exceeding 1 billion barrels of recoverable oil.



Ryder Scott recently completed a reserves study on the Tigris structure (the
report is available on the Gulfsands' website at www.gulfsands.net) and pending
the Company's drilling and testing of the Tigris structure, classified these
reserves as either oil or gas bearing. Ryder Scott assessed Gulfsands' net
Probable Reserves were 102 BCFG and had a net present value of $233 million.
Assuming a primarily natural gas accumulation, Ryder Scott estimated Gulfsands
had an additional net 75 BCFG of possible reserves with a net present value of
$261 million. All reserve estimations for Syria were calculated using a discount
rate of 10% and after applying the terms of the Production Sharing Contract
after Syrian taxes.



The Company has completed its own economic evaluation on the Prospective Gas
Resource and has estimated the Company to have a net Prospective Gas Resource of
577 BCFG with a net present value of approximately $1.06 billion.



In summary, Gulfsands' total net gas reserves potential among Probable and
Possible Reserves for the natural gas case is estimated at 177 BCFG (30 MMBOE)
with a net present value of $494 million. When combined with the Prospective Gas
Resource for an aggregate 754 BCFG (126 MMBOE), the net present value of
Gulfsands' interest are estimated to be valued at approximately $1.55 billion.



Ryder Scott estimated that for a primarily oil accumulation, the Possible
Reserves net to Gulfsands are 19.4 million barrels of oil with a net present
value of $452 million. Gulfsands has completed its own economic evaluation on
the Prospective Oil Resource and has estimated its net Prospective Oil Resource
at 50.9 MMBO with a net present value of approximately $1.51 billion.



In summary Gulfsands total net oil reserves potential among Possible and
Prospective Oil Resource for the oil case is estimated at 70.3 MMBO with a net
present value of approximately $1.96 billion.



Iraq

Gulfsands signed a Memorandum of Understanding in January 2005 with the Ministry
of Oil in Iraq for the Misan Gas Project in Southern Iraq and following
completion of a feasibility study on the project, is currently negotiating
details of definitive contracts for this regionally important development. The
project will gather, process and transmit natural gas that is currently a waste
by-product of oil production and as a result of the present practice of gas
flaring, contributes to significant environmental damage in the region.



Onshore USA

Gulfsands operates onshore in the USA through its 100% owned subsidiary company
Darcy Energy LLC which owns interests in two oil and gas fields onshore Texas,
USA (34.375% working interest in Emily Hawes and 37.5% working interest in Barb
Mag) with proved and probable recoverable reserves net to Gulfsands at 1 January
2006 of 1.6 BCFGE, consisting of 1.2 BCFG and 58,000 barrels of oil with an
estimated net present value of $9.5 million. Additionally, these fields contain
a further 2.2 BCFGE of possible recoverable reserves net to Gulfsands with an
estimated net present value of $7.9 million.



Appendix I

Summary details of the interests of John Dorrier and David DeCort following the
Options Exercise and sale of the Sale Shares are as follows:


Director            Number of        Date of       Exercise    Ordinary      Total remaining   Ordinary Shares
                    options over     Grants        Price                     Ordinary Shares   held following the
                    Ordinary Shares                            Shares sold   under option      Exercise / %
                    exercised                                                following the
                                                               at 90p each   Exercise

                             700,000
John Dorrier               1,137,500      1 Jan 03      $0.429
                           1,487,500     17 Oct 03      $0.571                                  9,098,750 / 8.83%
                                         15 Nov 98      $0.114     3,110,000           500,000

David DeCort                 568,750      1 Jan 03      $0.429
                             875,000     17 Oct 03      $0.571                                  5,164,375 / 5.01%
                             875,000     15 Nov 98      $0.114     1,440,000           450,000

Total                      5,643,750                               4,550,000           950,000       14,313,125 /
                                                                                                           13.84%



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